October
31, 2003

GOVERNMENT PROPERTY - INSTRUCTIONS FOR PREPARING
NASA FORM 1018

PURPOSE:
This PN revises the NASA FAR
Supplement (NFS) toprovide a definition of
obsolete property, to address contractor validation of 1018 data and proper
reporting of software to which NASA has title, to clarify other property
classifications, and revise the date for submission of annual property reports.

BACKGROUND:Each year, NASA’s financial
statements are audited in accordance with generally accepted government
auditing standards.NASA must maintain
adequate controls to reasonably assure that property, plant and equipment and
materials are presented fairly in its financial statements. Since contractors
maintain NASA’s official records for its assets in their possession, NASA uses
the data contained in contractor reports for annual financial statements and
property management.This PN
provides policies and procedures related to obsolete property, contractor
validation of 1018 data, and proper reporting of software to which NASA has
title.This change will provide for
consistent reporting of NASA property by contractors.It also reflects the need to change the
date of submission for annual property reports from October 31st to
October 15th.

ACQUISITIONS
AFFECTED BY CHANGES:Solicitations and contracts that require property reporting.

ACTION
REQUIRED BY CONTRACTING OFFICERS:The new clause should be incorporated into all new solicitations and
contracts.Solicitations that have been
issued, and bilateral agreements for which negotiations have been completed,
before the receipt of the new clause need not be amended to include the new
clause if including it would unduly delay the acquisition.

CLAUSE
CHANGES:Paragraph (c) of
1852.245-73 Financial Reporting of NASA Property in the Custody of Contractors
has been added to reflect the need to submit the annual report in time to be
received by October 15 each year.Data
included in the report should be supported and documented by historical
experience or other corroborating evidence, and be retained in accordance with
FAR Subpart 4.7, contractor Records Retention.Contractors shall have formal policies and procedures which address the
validation of NF 1018 data.If the
Contractor fails to submit annual NF 1018 reports in accordance with
1845.505-14 and any supplemental instructions for the current reporting period
issued by NASA, the Contracting Officer may, in NASA’s interest, withhold
payment until a reserve not exceeding $25,000 or 5 percent of the amount of the
contract, whichever is less, has been set aside.

PARTS AFFECTED:Changes are made in Parts 1845 and 1852.

REPLACEMENT
PAGES:You may use the enclosed
pages to replace 45:13 through 45:29, 52:81 through 52:90, 52-97, and 52-98 of
the NASA FAR Supplement.

TYPE OF RULE AND
PUBLICATION DATE:The PN was
published as an interim rule in the Federal Register (68 FR 62023 - 62026) on October
31, 2003.

A copy of Standard Form 1424, Inventory
Disposal Report, shall be provided to the center industrial property officer or
the PDO.

Subpart 1845.70--Reserved

Subpart 1845.71--Forms Preparation

1845.7101Instructions for preparing NASA Form 1018.

NASA must account for and report assets in
accordance with 31 U.S.C. 3512 and 31 U.S.C. 3515, Federal Accounting
Standards, and Office of Management and Budget (OMB) instructions.Since contractors maintain NASA’s official
records for its assets in their possession, NASA must obtain periodic data from
those records to meet these requirements.Changes in Federal Accounting Standards and OMB reporting requirements
may occur from year to year, requiring contractor submission of supplemental
information with the NASA Form (NF) 1018.The specific Statements of Federal Financial Accounting Standards
(SFFAS) to be used for property records are SFFAS No. 3 “Accounting for
Inventory and Related Property”, SFFAS No. 6 “Accounting for Property, Plant
and Equipment”, SFFAS No. 10 “Accounting for Internal Use Software”, and SFFAS
No. 11 “Amendments to PP&E: Definitions” issued by the Federal Accounting
Standards Advisory Board.Classifications of property, related costs to be reported, and other
reporting requirements are discussed in this subpart.NF 1018 (see 1853.3)
provides critical information for NASA financial statements and property
management.Accuracy, completeness, and
timeliness of the report are critical to many aspects of NASA’s operations.

1845.7101-1Property classification.

(a)
General.

(1)Contractors shall report costs in the classifications on NF 1018, as
described in this section.The cost of heritage assets and obsolete property will be
reported on the NF 1018 under the appropriate classification.Supplemental reporting may also be
required.

(2)(i) Heritage
assets are property, plant and equipment that possess one or more of the
following characteristics:

(A)Historical or natural significance;

(B)Cultural, educational or artistic importance; or

(C)Significant architectural characteristics.

(ii) Examples of NASA heritage assets
include buildings and structures designated as National Historic Landmarks as
well as aircraft, spacecraft and related components on display to enhance
public understanding of NASA programs.Heritage assets which serve both a heritage and government operation
function are considered multi-use when the predominant use is in general government
operations.Multi-use heritage assets
will not be considered heritage assets for NF 1018 supplemental reporting
purposes.

(3) Obsolete property is property for
which there are no current plans for use in its intended purpose (i.e. it no
longer provides service to NASA operations).Examples of obsolete property are items in configurations which are no
longer required or used by NASA or items held for engineering evaluation
purposes only.NASA may have approved
the retention of these items for programmatic reasons even though they have no
current plans for use.

(b)Land.Includes costs of land and improvements to land.Contractors shall report land

with a
unit acquisition cost of $100,000 or more.

(c)Buildings.Includes costs of
buildings, improvements to buildings, and fixed equipment required for the
operation of a building which is permanently attached to and a part of the
building and cannot be removed without cutting into the walls, ceilings, or
floors.Contractors shall report
buildings with a unit acquisition cost of $100,000 or more.Examples of fixed equipment required for
functioning of a building include plumbing, heating and lighting equipment,
elevators, central air conditioning systems, and built-in safes and vaults.

(d)Other Structures and Facilities.Includes costs of acquisitions and
improvements of real property (i.e. structures and facilities other than
buildings); for example, airfield pavements, harbor and port facilities, power
production facilities and distribution systems, reclamation and irrigation
facilities, flood control and navigation aids, utility systems (heating,
sewage, water and electrical) when they serve several buildings or structures,
communication systems, traffic aids, roads and bridges, railroads, monuments
and memorials, and nonstructural improvements such as sidewalks, parking areas,
and fences.Contractors shall report
other structures and facilities with a unit acquisition cost of $100,000 or
more and a useful life of two years or more.

buildings,
structures, and facilities, as well as easements and right-of-way, where NASA
is the

lessee or
the cost is charged to a NASA contract.Contractors shall report leasehold

improvements
with a unit acquisition cost of $100,000 or more and a useful life of two years
or

more.

(f)Construction in Progress.Includes costs of work in process for the
construction of

Buildings,
Other Structures and Facilities, and Leasehold Improvements to which NASA has

title,
regardless of value.

(g) Equipment.Includes costs of commercially available
personal property capable of stand-alone use in manufacturing supplies,
performing services, or any general or administrative purpose (for example, machine
tools, furniture, vehicles, computers, software, test equipment, including
their accessory or auxiliary items).Software integrated into and necessary to operate another item of
Government property is considered to be an auxiliary item (see FAR 45.501) and
should be considered part of the item of which it is an integral part.Other software to which NASA has title shall
be classified as an individual item of equipment for reporting purposes if it
has a useful life of 2 years or more and acquisition cost of$1,000,000 or more (also see
1845.7101-3(g)).Enhancement costs for
existing software should be added to the software acquisition cost if the
enhancement results in significant additional capability beyond that for which
the software was originally developed (i.e. a capability that was not included
in the original software specifications, the total cost of the enhancement is
$1,000,000 or more, or the expected useful life of the enhanced software is 2
years or more).Software licenses are
excluded.Contractors shall separately
report:

(1) the amountfor all items with a unit acquisition cost of $100,000 or more
and a useful

life of
two years or more; and

(2) All other items.

(h)
Special Tooling.Includes costs of
equipment and manufacturing aids (and their components and replacements)of such a specialized nature that, without
substantial modification or alteration, their use is limited to development or
production of particular supplies or parts, or performance of particular
services (see FAR 45.101). Examples include jigs, dies, fixtures, molds,
patterns, taps and gauges. Contractors shall separately report:

(1) the amount for all items with a unit
acquisition cost of $100,000 ormore
and a useful life of two years or more; and

(2) All other items.

(i) Special
Test Equipment.Includes costs of
equipment used to accomplish special purpose testing in performing a contract,
and items or assemblies of equipment (see FAR 45.101).Contractors shall separately report:

(1) the amount for all items with a unit
acquisition cost of $100,000 or more and a useful life of two years or more;
and

(2)All other items.

(j)Material.Includes costs of NASA-owned property held in inventory
regardless of whether or not it is unique to NASA programs that may become a
part of an end item or be expended in performing a contract.Examples include raw and processed material,
spares, parts, assemblies, small tools and supplies.Material that is part of work-in-process is not included.Contractors shall report the amount for all
Materials in inventory, regardless of unit acquisition cost.

(k) Agency-Peculiar Property.Includes costs of completed items, unique to
NASA aeronautical and space programs, which are capable of stand-alone
operation.Examples include research
aircraft, reusable space vehicles, ground support equipment, prototypes, and
mock-ups.The amount of property, title
to which vests in NASA as a result of progress payments to fixed price
subcontractors, shall be included to reflect the pro rata cost of undelivered
agency-peculiar property.Completed end
items not related to the International Space Station or the Space Shuttle
program which otherwise meet the definition of Agency-Peculiar Property,and are destined for permanent operation in
space, such as satellites and space probes, shall not be reported.Contractors shall separately report:

(1) the amount for all items with a unit
acquisition cost of $100,000 or more and a useful life of two years or more;
and

(2)All other items.

(l) Contract Work-in-Process.Work-in-process (WIP) consists of property items under construction
(i.e. not complete).It includes costs
of all work-in-process regardless of value, and excludes costs of completed
items reported in other categories. While the costs of WIP for International
Space Station and Space Shuttle components should be included as WIP,
satellites and space probes and their components should be excluded from WIP as
those items will be accounted for by NASA.

1845.7101-2 Transfers of property.

A transfer is a change in accountability
between and among prime contracts, NASA Centers, and other Government agencies
(e.g., between contracts of the same NASA Center, contracts of different NASA
Centers, a contract of one NASA Center to another, a NASA Center to a contract
of another NASA Center, and a contract to another Government agency or its
contract).To enable NASA to properly
control and account for all transfers, they shall be adequately
documented.Adequate documentation
includes the appropriate dollar amount of the asset(s) transferred (as
prescribed in 1845.7101-3) and the formal, signed NASA or contractor
authorization approving the transfer.In addition, procurement, property, and financial organizations at NASA
Centers must effect all transfers of accountability, although physical shipment
and receipt of property may be made directly by contractors. The procedures
described in this section shall be followed to provide an administrative and
audit trail, even if property is physically shipped directly from one
contractor to another.Property shipped
between

September
1 and September 30, inclusively, shall be accounted for and reported by the
shipping contractor, regardless of the method of shipment, unless written
evidence of receipt at destination has been received.Repairables provided under fixed price repair contracts that
include the clause at 1852.245-72,
Liability for Government Property Furnished for Repair or Other Services,
remain accountable to the cognizant NASA Center and are not reportable on NF
1018; repairables provided under a cost-reimbursement contract, however, are
accountable to the contractor and reportable on NF 1018.All materials provided to conduct repairs
are reportable, regardless of contract type.

(a) Approval and Notification.The contractor must obtain approval of the
contracting officer

or
designee for transfers of property off the prime contract before shipment. Each
shipping document must be signed by the contracting officer or designee
demonstrating such approval.Each
shipping document must contain contract numbers, shipping references, property
classifications in which the items are recorded (including Federal Supply
Classification group (FSC) codes for equipment), unit acquisition costs (as
defined in 1845.7101-3, Unit Acquisition Cost), original Government acquisition
dates for items with a unit acquisition cost of $100,000 or more and a useful
life of two years or more, and any other appropriate identifying or descriptive
data.Where the DD Form 250, Material
Inspection and Receiving Report, is used, the FSC code will be part of the
national stock number (NSN) entered in Block 16 or, if the NSN is not provided,
the FSC alone shall be shown in Block 16.The original Government acquisition date shall be shown in Block 23, by
item.Other formats, such as the DD
Form 1149, Requisition and Invoice/Shipping Document, should be clearly
annotated with the required information.Unit acquisition costs shall be obtained from records maintained
pursuant to FAR Part 45and this Part 1845, or, for uncompleted items where
property records have not yet been established, from such other record systems
as are appropriate such as manufacturing or engineering records used for work
control and billing purposes.Shipping
contractors shall furnish a copy of the formally approved shipping document to
the cognizant property administrator.Shipping and receiving contractors shall promptly submit copies of
shipping and receiving documents to the Center Deputy Chief Financial Officer,
Finance, responsible for their respective contracts when accountability for
NASA property is transferred to, or received from, other contracts,
contractors, NASA Centers, or Government agencies.

(b)Reclassification.If property is transferred to another
contract or contractor, the receiving

contractor
shall record the property in the same property classification and amount
appearing on the shipping document.For
example, when a contractor receives an item from another contractor that is
identified on the shipping document as equipment, but that the recipient
intends to incorporate into special test equipment, the recipient shall first
record the item in the equipment account and subsequently reclassify it as special
test equipment. Reclassification of equipment, special tooling, special test
equipment, or agency-peculiar property requires prior approval of the
contracting officer or a designee.

(c) Incomplete documentation. If contractors receive transfer documents
having insufficient detail to properly record the transfer (e.g., omission of
property classification, FSC, unit acquisition cost, Government acquisition
date, required signatures, etc.) they shall request the omitted data directly
from the shipping contractor or through the property administrator as provided
in FAR 45.505-2.The contracting officer shall assist the Government Property
Administrator and the receiving contractor to obtain all required information
for the receiving contractor to establish adequate property records.

1845.7101-3Unit acquisition cost.

(a)The unit acquisition cost shall include all costs incurred to bring the
property to a form and

location suitable
for its intended use. The following is representative of the types of costs
that shall be included, when applicable:

(1)Amounts paid to vendors or other
contractors.

(2)Transportation charges to the point of
initial use.

(3)Handling and storage charges.

(4)Labor and other direct or indirect
production costs (for assets produced or constructed).

(5)Engineering, architectural, and other
outside services for designs, plans, specifications, and surveys.

(6)Acquisition and preparation costs of
buildings and other facilities.

(7)An appropriate share of the cost of the
equipment and facilities used in construction work.

(8)Fixed equipment and related installation
costs required for activities in a building or facility.

(9)Direct costs of inspection, supervision, and
administration of construction contracts and construction work.

(10)
Legal and recording fees and damage claims.

(11)
Fair values of facilities and equipment donated to the Government.

(b)Acquisition cost shall include, where appropriate, for contractor
acquired property, related fees, or a pro rata portion of fees, paid by NASA to
the contractor.Situations where
inclusion of fees in the acquisition cost would be appropriate are those in
which the contractor designs, develops, fabricates or purchases property for
NASA and part of the fees paid to the contractor by NASA are related to that
effort.

(c) Acquisition cost shall be developed using actual costs to the
greatest extent possible, especially costs directly related to fabrication such
as labor and materials.Where estimates
are used, there must be a documented methodology based on a historical
basis.All acquisition costs shall be
properly documented, supported and retained.Supporting documentation shall be made available upon request.

(d)The use of weighted average methodologies is acceptable for valuation of
Material.

(e)Contractors shall report unit acquisition costs using records that are
part of the prescribed

property
or financial control system as provided in this section.Fabrication costs shall be based

on
approved systems or procedures and include all direct and indirect costs of
fabrication.

(f)Only modifications that improve an item’s capacity or extend its useful
life two years or more and that cost $100,000 or more shall be reported on the
NF 1018 on the $100,000 & Over line.The costs of any other modifications, excluding routine maintenance,
will be reported on the Under $100,000 line.If an item’s original unit acquisition cost is less than $100,000, but a
single subsequent modification costs $100,000 or more, that modification only
will be reported as an item $100,000 or more on subsequent NF 1018s.The original acquisition cost of the item will
continue to be included in the under $100,000 total.The quantity for the modified item will remain “1” and be
reported with the original acquisition cost of the item.If an item’s acquisition cost is reduced by
removal of components so that its remaining acquisition cost is under $100,000,
it shall be reported as under $100,000.

(g) Software
acquisition costs include software costs incurred up through acceptance testing
and material internal costs incurred to implement the software and otherwise
make the software ready for use.Costs
incurred after acceptance testing are excluded.License, maintenance, training, and data conversion costs are
also excluded.If the software is
purchased as part of a package, the costs will need to be segregated in such
manner as to ensure that the excluded costs (maintenance, training, etc.) are
not reported as part of the software’s acquisition cost.Enhancement costs for existing software
should be added to the acquisition cost if the enhancement results in significant
additional capability beyond that for which the software was originally
developed (i.e. a capability that was not included in the original software
specifications), the total cost of the enhancement is $1,000,000 or more, and
the expected useful life of the enhanced software is 2 years or more.Include the same types of cost as indicated
above under new software.Costs
incurred solely to repair a design flaw or perform minor upgrades should not be
included.

(h)
The computation of work in process (WIP) shall include all direct and indirect
costs of fabrication, including associated systems, subsystems, and spare parts
and components furnished or acquired and charged to work in process pending
incorporation into a finished item. These types of items make up what is
sometimes called production inventory and include programmed extra units to
cover replacement during the fabrication process (production spares).Also included are deliverable items on which
the contractor or a subcontractor has begun work, and materials issued from
inventory. The computation of WIP shall incorporate the other requirements for
unit acquisition cost as outlined in paragraphs (a) through (e) of this
section.In addition, acquisition cost
of property furnished by the Government, which has been incorporated in the property
item under construction or in process of fabrication, should be included.Do not include costs for operation or
repairing existing completed property items.Once the property is complete, include all the costs outlined above in
its acquisition value in the property record.The WIP values are inception to date until such time as the WIP is
completed.It does not include future
costs.

1845.7101-4Types of deletions from contractor property records.

Contractors shall report the types of deletions
from contract property records as described in this

section.

(a)Lost, Damaged or Destroyed. Deletion
amounts that result from relief from responsibility under FAR 45.503 granted
during the reporting period.

(b)
Transferred in Place.Deletion
amounts that result from transfer of property to a follow-on prime contract or
other prime contract with the same contractor.

(c)Transferred to NASA Center Accountability.Deletion amounts that result from transfer
of accountability to the NASA Center responsible for the contract, whether or
not items are physically moved.

(d)Transferred to Another NASA Center.Deletion amounts that result from transfer
of accountability to a NASA Center other than the one responsible for the
contract, whether or not items are physically moved.

(e)Transferred to Another Government Agency.Deletion amounts that result from transfer
of property to another Government agency.

(f)Purchased at Cost/Returned for Credit.Deletion amounts that result from contractor
purchase or retention of contractor acquired property as provided in FAR
45.605-1, or from contractor returns to suppliers under FAR 45.605-2.

(g)Disposed of Through Plant Clearance Process.Deletions other than transfers within the
Federal Government, e.g., donations to eligible recipients, sold at less than
cost, or abandoned/directed destruction, or trade-ins.

(h) Other.Types of deletion other than those reported
in paragraph (a) through (g) of this section such as those resulting from
reclassifications (e.g. from equipment to agency-peculiar property).

1845.7101-5Contractor's privileged financial and business information.

If a transfer of property between
contractors involves disclosing costs of a proprietary nature, the contractor
shall furnish unit acquisition costs only oncopies ofshipping documents
sent to the shipping and receiving NASA Centers.

1845.7102Instructions for
preparing DD Form 1419.

(a)The contractor shall enter the essential information covering Sections I
and II before submission of DD Form 1419, DOD Industrial Plant Equipment
Requisition, to the Industrial Property Officer (IPO).The IPO shall review each submission for
completeness and authenticity.Incomplete or invalid requests shall be returned for correction.

(b)When a suitable item is allocated in Section IV, inspection of the
equipment is recommended.Notification
of acceptance or rejection of the item offered must reach NASA within 30 days
after allocation.A copy of the DD Form
1419, or equivalent format, will serve as the clearance document to inspect the
equipment at the storage site.Note
acceptance or rejectionof the item,
without inspection or after inspection in Section VI.If the item is acceptable, execute Section VII.Cite the NASA appropriation symbol where
applicable in Section VII.

(c)The IPO shall assign a requisition number to each DD Form 1419, or
equivalent format request.

(d)Next will be a four-digit entry comprised of the last digit of the
current calendar year and the Julian date of the year.For example, April 15, 1997, would be
written as 7095 (April 15 being the 95th day of the year).The last entry will be a four-digit number
from 0001 to 9999 to sequentially number requisition forms prepared on the same
date. For example, the ninth requisition prepared on April 15, 1997, would be
7095-0009, preceded by the FEDSTRIP/MILSTRIP Activity Address Code.When submitting subsequent DD Forms 1419, or
equivalent format, related to the item requested, the IPOshall use the same requisition number and
add the alpha code to the end of the requisition number to indicate a second or
third action on the basic request.Alpha "A" would indicate a second request, "B" a
third, etc.In this manner, all
actions, correspondence, etc., relative to a given request can be identified at
all levels of processing by the use of the requisition number.

(e)Detailed directions for completing the DD Form 1419 follow.The contractor may elect to provide the
required data in an equivalent format, which complies with these directions.

Section I

Item
Description.To ensure adequate
screening, the item description must be complete.For single-purpose equipment or general-purpose equipment with
special features, requests must contain detailed descriptive data as to size
and capacities, setting forth special operating features or particular
operations required to be performed by the item.

Block
1.Not applicable.

Block
2.Enter the manufacturer's name
and Federal Supply Code for manufacturer (Cataloging Handbook H4-1) of the item
requested.

Block
3.Enter the manufacturer's model,
style, or catalog number assigned to the equipment being requisitioned.Always use the model number, if available.The style number is the next preference.Enter "None" in this block if the
model, style or catalog number is not known.

Block
4.Enter the first four digits of
the National Stock Number, if known.

Block
5.Not applicable.

Block
6.Self-explanatory.

Block
7.Place an "X" in the applicable
block to indicate whether you desire to physically inspect the item before
acceptance.

Block
8.Self-explanatory.

Block
9.Enter the complete description
of the item.Continue the description
in Block 53 if additional space is needed.

Section II.

Block
10.Enter the contractor's name,
street address, city, state, and zip code from which the requisition is being
initiated.The address should be the
one to which inquiries of a technical nature will be referred. Specify the
telephone number of an individual who will respond to inquiries concerning the
request.

Block
11.Enter the contract number or
document number authorizing acquisition of the items shown in Section I.This normally will be a facility contract
number.Otherwise, it should be a
purchase order or procurement request number.

Block
12.Self-explanatory.

Block
13.Not applicable.

Block
14.Disregard the
"Military" block. Show the NASA contract number and program for which
the item is to be used.

Block
15.Enter the specific function to
be performed by the equipment.When
applicable, enter the tolerances, capacities, specifications, etc., that the
equipment must satisfy.

Block
16.Determine the date the item
must be installed to meet production requirements.From this date deduct the estimated number of days required for
installation.Enter the adjusted date
in this block.

Block
17.Enter the date by which NASA
must issue a Certificate of Nonavailability.Determine the date by subtracting the acquisition lead time and 30 days
administrative lead time from the date shown in Block 16.

Block
18.Enter the Defense Priority and
Allocations System (DPAS) rating assigned to the contract or anticipated
purchase order, if applicable.

Block
19.Place an "X" in the
appropriate box.If for replacement,
identify the item being replaced and the reason for replacement.

Block
20.Placean "X" in the appropriate box.Show the appropriation symbol if the answer
is "yes."

Block
21.Not applicable.

Blocks
22 and 23.In addition to the
official's title and signature, type the signing official's name, office symbol
or name, and telephone number plus extension.The company representative who prepares and submits the requirement to
the cognizant NASA certifying office should sign.

Block
24.Self-explanatory.

Block
25a.Not applicable.

Block
25b.Enter the name and address of
the installation certifying the requirement.

Block
25c.This block is for signature of
the property administrator or contracting officer at plant level.

Block
25d.Self-explanatory.

Block
25e.This block is for the
signature of NASA installation official certifying the requirement.

Block
48.Enter the complete name, street
address, city, state, and zip code of the contractor or installation to which
the item is to be shipped.Indicate
railhead and truck delivery points when other than the address named.

Blocks
49 and 50.Self-explanatory.

Blocks
51a. and b.Ensure that NASA
appropriation symbols are included with the work order number.

Block
51c.Enter the NASA appropriation
symbol chargeable for any special work ordered (e.g., rebuild, repair, or
accessory replacement).

Block
51d.Enter the NASA installation
and office symbol for the organization that will make payment for
transportation and packing, crating, and handling.

Block
52.Self-explanatory.

Section VIII.

Block
53.This block can be used to
expand or explain entries made in Blocks 1 through 52.When requisitioning equipment from excess
listings, identify the issuing office, list number, date, control number, and
item number assigned to the equipment.When requesting equipment from DOD inventories, refer to DOD
instructions.

Subpart 1845.72--Contract Property
Management

1845.7201Definitions.

"Supporting
responsibility," as used in this subpart, relates to the assignment of
a subcontract, or a portion of a prime contract being performed at a secondary
location of the prime contractor, to a property administrator other than the
individual assigned to the prime location.

"Property
control system," as used in this subpart, identifies a contractor's
internal management program encompassing the protection of, preservation of,
accounting for, and control of property from its acquisition through
disposition.

1845.7202General.

This subpart describes major elements of the
NASA ContractProperty Management Program.It provides guidance to NASA installation
personnel responsible for NASA contract property (NASA personal property in the
possession of contractors). It applies to all NASA installation personnel
charged with this responsibility, including industrial property officers and
specialists, property administrators, and plant clearance officers. It also
provides detailed procedures for property administration.The NASA Contract Property Management
Program includes the following three major elements:

(a) Performance of property administration
and plant clearance by DOD under delegations from NASA, pursuant to 1842.101.

(b) Performance of property administration
and plant clearance by NASA under certain situations, pursuant to 1842.203.

When delegated to DOD, property
administration and plant clearance are performed in accordance with DOD's
regulations and procedures, as amended by the NASA Letter of Contract
Administration Delegation, Special Instructions on Property Administration and
Plant Clearance. These Special Instructions are developed by the Headquarters
Office of Management Systems and Facilities Logistics Management Office (Code
JLG), and are available from that office upon request.The contracting officer shall issue the
Special Instructions with delegations whenever Government property will be
involved.Additional or more tailored
property instructions are not proscribed but must be coordinated with Code JLG
before issuance.

1845.7204Retention of property administration and plant clearance.

NASA may occasionally retain the property
administration and plant clearance function, such as for contract work
performed at the installation awarding the contract and not subject to the
clause at 1852.245-71, Installation-Accountable Government Property.In these cases, property administration
shall be performed in accordance with 1845.3 through 1845.6, and plant
clearance shall be performed in accordance with FAR Subpart 45.6 and
1845.6.Under the clause at
1852.245-71, property administration and plant clearance are neither delegated
nor retained; they are simply not required because the property is treated as
installation rather than contract property.

NASA contracting officers retain functional
management responsibility for their contracts. Utilization of the contract
administration services of another Government agency in no way relieves NASA
contracting officers of their ultimate responsibility for the proper and
effective management of contracts. The functional management responsibility for
contract property is described in this section. Beyond individual contracting
officers, each NASA installation has designated an industrial property officer
to manage and coordinate property matters among the various contracting
officers, technical officials, contractor officials, and delegated property
administrators and plant clearance officers.Generally, that individual is responsible for the entire contract
property management function outlined below; the installation is responsible
for the entire function regardless of how it is organized and distributed.The responsibilities are:

(a) Provide a focal point for all management
of contract property, including Government property (Government-furnished and
contractor-acquired) provided to universities as well as to industry.

(b) Provide guidance to contracting and
other personnel on the NASA property provisions.

(l) Maintain contract property files for all
transactions and correspondence associated with each contract. Upon receipt of
Standard Form 1424, Inventory Disposal Report, and DD Form 1593, Contract
Administration Completion Record, or equivalents, merge all property records
for the contract and forward for inclusion with the official completed file.

(m) Perform on-site property administration
and plant clearance when they are not delegated to DOD and the property is not
subject to the clause at 1852.245-71.

(a) When property administration is not
delegated to DOD, the property administrator shall evaluate the contractor's
management and control of Government property and ascertain whether the
contractor is effectively complying with the contract provisions.The property administrator's
responsibilities include--

(1) Developing and applying a system
survey program for each contractor under the property administrator's
cognizance;

(2) Evaluating the contractor's property
control system and approving or recommending disapproval;

(3) Advising the contracting officer of
any (i) contractor noncompliance with approved procedures and (ii) other
significant problems the property administrator cannot resolve, and
recommending appropriate action, which may include disapproval of the
contractor's property control system;

(4) Resolving property administration
matters as necessary with the contractor's management, personnel from
Government procurement and logistics activities, and representatives of the
NASA Headquarters Office of the Inspector General, the Defense Contract Audit
Agency (DCAA), and other Government agencies; and

(5) Recognizing the functions of other
Government personnel having cognizance of Government property and obtaining
their assistance when required.(These
functions include, but are not limited to, contract audit, quality assurance,
engineering, pricing, and other technical areas. Assistance and advice on
matters involving analyses of the contractor's books and accounting records and
on any other audit matters deemed appropriate shall be obtained from the
cognizant auditor.)

(b) The participation ofproperty administrators (or other Government
industrial property personnel) in pre-award surveys/post-award orientations is
required whenever significant amounts of Government property will be involved,
in order to reveal and resolve property management problems early in the
acquisition cycle.

1845.7206-2Plant clearance officers.

When plant clearance is not delegated to
DOD, NASA plant clearance officers shall be responsible for--

(a) Providing the contractor with
instructions and advice regarding the proper preparation of inventory
schedules;

(b) Accepting or rejecting inventory
schedules;

(c) Conducting or arranging for inventory
verification;

(d) Initiating prescribed screening and
effecting resulting actions;

(e) Final plant clearance of contractor
inventory;

(f) Pre-inventory scrap determinations, as
appropriate;

(g) Evaluating the adequacy of the
contractor's procedures for property disposal;

(h) Determining the method of disposal;

(i) Surveillance of any contractor-conducted
sales;

(j) Accounting for all contractor inventory
reported by the contractor;

(k) Advising and assisting, as appropriate,
the contractor, the Supply and Equipment Management Officer (SEMO) and other
Federal agencies in all actions relating to the proper and timely disposal of
contractor inventory;

(l) Approving the method of sale, evaluating
bids, and approving sale prices for any contractor-conducted sales;

(m) Recommending the reasonableness of
selling expenses related to any contractor-conducted sales;

(n) Securing antitrust clearance, as
required; and

(o) Advising the contracting officer on all
property disposal matters.

1845.7207Declaration of
excess property.

A problem often disclosed by system analysis
is the failure of a contractor to report Government property not needed in
performance of the contract (excess).The property administrator shall fully document and report any such
finding to the administrative contracting officer.After a report of excess received from a contractor has been
referred to the plant clearance officer for screening and ultimate disposition,
the property administrator shall ensure prompt disposition.For centrally reportable plant equipment,
the property administrator shall--

(a) Assure the preparation and submission of
individual reportsrequired of the
contractor;

(b) Verify the permit certifications
required by the forms; and

(c) Transmit the report to the NASA
Industrial Property Officer.

1845.7208Closure of contracts.

1845.7208-1Completion or termination.

Upon completion or termination of a
contract, the property administrator shall--

(a) Monitor the actions of the contractor in
returning excess Government property not referred to the plant clearance officer;
and

(b) Advise the cognizant plant clearance
officer as to the existence at a contractor's plant of residual property
requiring disposal.

1845.7208-2Final review and closing of contracts.

(a) When informed that disposition of
Government property under a contract has been completed, the property
administrator shall perform a final review and sign a determination that--

(1) Disposition of Government property
has been properly accomplished and documented;

(2) Adjustment documents, including any
request of the contractor for relief from responsibility, have been processed
to completion;

(3) Proceeds from disposals or other
property transactions, including adjustments, have been properly credited to
the contract or paid to the Government as directed by the contracting officer;

(4) All questions regarding title to
property fabricated or acquired under the contract have been resolved and
appropriately documented; and

(5) The contract property control record
file is complete and ready for retirement.

(b) When final review pursuant to paragraph
(a) of this section reveals that such action is proper, the property
administrator shall accomplish and sign a DD Form 1593, Contract Administration
Completion Record, or equivalent.

(c) The executed DD Form 1593 shall be
forwarded to the contracting officer, the Property Summary Data Record shall be
so annotated, and the contracting officer shall include it in the contract
file.

1845.7209Special subjects.

1845.7209-1Government property at alternate locations of the prime
contractor and subcontractor plants.

(a) Government property provided to a prime
contractor may be located at other plants of the prime contractor or at
subcontractor locations. The prime contractor is accountable and responsible to
the Government for this property.

(b) A Government property administrator
cognizant of the location of the property shall normally be designated to (1)
perform required surveys of the property control system and (2) exercise
surveillance over the property as a supporting responsibility.

(c) If the property administrator determines
that supporting property administration is required, he or she shall write the
cognizant contract administration office asking that a property administrator
be assigned.The request for supporting
property administration shall include--

(1) The name and address of the prime
contractor;

(2) The prime contract number;

(3) The name and address of the
alternate location of the prime contractor, or of the subcontractor where the
property will be located;

(4) A listing of the property being
furnished, or, if property is being acquired locally, a statement to this
effect; and

(5) A copy of the subcontract or other
document under which the property will be furnished or acquired.

(d) Concurrent with the action cited in
paragraph (c) of this section, the property administrator shall ascertain
whether the prime contractor will perform the necessary reviews and
surveillance with the contractor's own personnel, or elect to rely upon the
system approval and continuing surveillance by a supporting property
administrator of the property control system at the alternate location or
subcontractor plant.If the prime
contractor advises that it will accept the findings of a supporting property
administrator, a statement in writing to that effect shall be obtained.If the prime contractor does not so elect,
it shall be required to perform the requisite reviews and surveillance and
document its actions and findings.

(e) If a single item or limited quantities
of property will be located at an alternate location or subcontractor plant,
the property administrator may determine that supporting property
administration is unnecessary, provided--

(1) The prime contractor's records
adequately reflect the location and use of the property;

(2) The nature of the property is such
that the possibility of its use for unauthorized purposes is unlikely; and

(3) The nature of the property is such
that a program of preventive maintenance is not required.

(f) When supporting property administration
will not be requested, the services of a property administrator in the contract
administration office cognizant of the site where the property is located may
be requested on an occasional basis for special reviews or such other support
as may be necessary.Repeated requests
for assistance indicate a requirement for requesting supporting property
administration.

1845.7209-2Loss, damage, or destruction of Government property.

(a) Normally, contract provisions provide
for assumption of risk of loss, damage, or destruction of Government property
as described by the following:

(1) Sealed-bid and certain negotiated
fixed-price contracts provide that the contractor assumes the risk for all
Government property provided under the contract (see the clause at FAR
52.245-2, Government Property (Fixed-Price Contracts)).

(2) Other negotiated fixed-price
contracts provide that the contractor assumes the risk for all Government
property provided under the contract, with the exceptions set forth in the
clause at FAR 52.245-2,
Alternate I and Alternate II.

(3) Cost-reimbursement contracts (see the
clause at FAR 52.245-5, Government Property (Cost-Reimbursement,
Time-and-Material, or Labor-Hour Contracts)) provide that the Government
assumes the risk for all Government property provided under the contract when
there is no willful misconduct or lack of good faith of any of the contractor's
managerial personnel as defined in the contract.

(4) There are certain events for which
the Government does not assume the risk of loss, damage, or destruction of
Government property, such as risks the contract expressly requires the
contractor to insure against.Therefore, before reaching a conclusion or making a determination, the
contracting officer shall obtain property administrator review of the contract
clause and shall obtain advice from appropriate legal counsel on questions of
legal meaning or intent.

(5) "Willful misconduct" may
involve any intentional or deliberate act or failure to act causing, or
resulting in, loss, damage, or destruction of Government property.

(6) "Lack of good faith" may
involve gross neglect or disregard of the terms of the contract or of
appropriate directions of the contracting officer or the contracting officer's
authorized representatives.Examples of
lack of good faith may be demonstrated by the failure of the contractor's
managerial personnel to establish and maintain proper training and supervision
of employees and proper application of controls in compliance with instructions
issued by authorized Government personnel.

(b) If part of the contractor's system is
found to be unsatisfactory, the property administrator shall increase
surveillance of that part to prevent, to the extent possible, any loss, damage,
or destruction of Government property.The property administrator shall give special attention to reasonably
ensuring that any loss, damage, or destruction occurring during a period when a
contractor's system is not approved is identified before approval or
reinstatement of approval.

1845.7209-3Loss, damage, or destruction of Government property while in
contractor's possession or control.

(a) The property administrator shall require
the contractor to report any loss, damage, or destruction of Government
property in its possession or control (including property in the possession or
control of subcontractors) as soon as it becomes known.

(b) When physical inventories, consumption
analyses, or other actions disclose consumption of Government property
considered unreasonable by the property administrator or loss, damage, or
destruction of Government property not reported by the contractor, the property
administrator shall prepare a statement of the items and amount involved.This statement shall be furnished to the
contractor for investigation and submission of a written report to the property
administrator relative to the incidents reported.

(c) The contractor's reports referenced in
paragraphs (a) and (b) of this section shall contain factual data as to the
circumstances surrounding the loss, damage, destruction, or excessive
consumption, including--

(3) The cost of property lost, damaged, destroyed,
or unreasonably consumed and cost of repairs in instances of damage (in event
actual cost is not known, use a reasonable estimate);

(4) The date, time (if pertinent), and
cause or origin of the loss, damage, destruction, or consumption;

(5) Known interests in any commingled property of which the
Government property lost, damaged, destroyed, or unreasonably consumed is (or
was) a part;

(6) Insurance, if any, covering the
Government property or any part or interest in any commingled property;

(7) Actions taken by the contractor to
prevent further loss, damage, destruction, or unreasonable consumption and to
prevent repetition of similar incidents; and

(8) Other facts or circumstances
relevant to determining liability and responsibility for repair or replacement.

(d) The property administrator shall
investigate the incident to the degree required to reach a valid and
supportable conclusion as to the contractor's liability for the loss, damage,
destruction, or unreasonable consumption under the terms of the contract, and
the course of action required to conclude the adjustment action.When required, the assistance of the quality
assurance representative, industrial specialist, insurance officer, legal
counsel, or other technician will be secured.When the contractor acknowledges liability, the property administrator
shall forward a copy of the credit memorandum or other adjusting document to
the administrative contracting officer and auditor, if appropriate, to assure
proper credit. If analysis of contract provisions and circumstances establishes
that the loss, damage, destruction, or consumption constitutes a risk assumed
by the Government, the property administrator shall so advise the contractor in
writing, thereby relieving the contractor of responsibility for the property. A
copy of the documentation and notification to the contractor shall be retained
in the Contract Property Control Data File for the contract.

(e)(1) If the property administrator
concludes that the contractor is liable for the loss, damage, destruction, or
unreasonable consumption of Government property, he or she shall forward the
complete file with conclusions and recommendations to the contracting officer
for review and determination. The file shall contain--

(i) A statement of facts as
supported by investigation;

(ii) Recommendations as to the
contractor's liability and its amount;

(iii) Recommendations as to action
to be taken with regard to third party liability, if appropriate;

(iv) Requirements for disposition,
repair, or replacement of damaged property; and

(v) Other pertinent comments.

(2) A copy of the contracting officer's
determination shall be furnished to the contractor and the property
administrator, and a copy shall be retained in the contracting officer's
files.The property administrator's
copy shall be filed in the Contract Property Control Data File for the contract
when all pertinent actions, such as compensation to the Government or repair or
replacement of the property, have been completed.

1845.7209-4Financial reports.

The property administrator is responsible
for obtaining financial reports as prescribed in 1845.505-14 for all assigned
contracts. Reports shall be accumulated, reviewed and distributed as
required.Contractors are required to
submit separate reports on each contract that contains the property reporting
clause (see 1852.245-73) except as noted in 1845.7101-4(c).

1845.7210Contractor utilization of Government property.

1845.7210-1Utilization surveys.

(a) The property administrator is
responsible for ensuring that the contractor has effective procedures for
evaluating Government property utilization.However, when necessary, the contract administration office shall
provide specialists qualified to perform the technical portion of utilization
surveys to assist the property administrator in determining the adequacy of
these procedures.

(b) Upon assignment of an initial contract
under which Government-owned plant equipment in particular will be provided to
a contractor, the property administrator shall ensure that the contractor has
established effective procedures and techniques for controlling its
utilization.The property
administrator, with the assistance of technical specialists, if necessary,
shall evaluate these procedures.A
record of the evaluation shall be prepared and become a part of the property
administration file.If the procedures
are determined inadequate, the record shall identify the deficiencies and the
corrective actions necessary.If the
deficiencies are not corrected by the contractor, the property administrator
shall promptly refer the matter to the contracting officer.

(c) The property administrator shall perform
annual surveys of the contractor's procedures related to utilization of
Government-owned plant equipment.At
contractor facilities having a substantial quantity of plant equipment, the
surveys should normally be

conducted
on a continual basis, reviewing equipment utilization records and physically
observing a group of preselected items during each portion of the survey.
Surveys shall be conducted to the degree determined necessary, considering the
findings of prior surveys and the contractor's performance history in
identifying and declaring equipment excess to authorized requirements.The contractor shall be required to justify,
by specific Government programs, the retention of all Government-owned plant
equipment.The property administrator
shall make maximum use of contractor's machine loading data, order boards,
production planning records, machine time records, and other production control
methods.

(d) The property administrator shall conduct
a special survey when a significant change occurs in the contractor's
production schedules, such as a termination, completion of a contract, or a
major adjustment in a program.Special
surveys may be limited to a given department, activity, or division of a
contractor's operation.

(e) In the absence of adequate justification
for retention, the contractor shall identify and report Government-owned plant
equipment in accordance with FAR 45.502(g) and 45.509-2(b)(4).Items that are part of approved inactive
package plants or standby lines are exempted from utilization surveys.The contracting officer shall ascertain
periodically whether existing authorizations for standby or lay-away
requirements are current.

1845.7210-2Records of surveys.

The property administrator shall prepare a
record incorporating written findings, conclusions, and recommendations at the
conclusion of each survey.If
appropriate, the property administrator's record may be limited to a statement
expressing concurrence with the reports of other specialists.The property administrator shall retain one
copy of each record in the property administration file.

(a) This clause shall govern with respect to
any Government property furnished to the Contractor for repair or other services
that is to be returned to the Government.Such property, hereinafter referred to as "Government property
furnished for servicing," shall not be subject to any clause of this
contract entitled Government-Furnished Property or Government Property.

(b)The official accountable recordkeeping and
financial control and reporting of the property subject to this clause shall be
retained by the Government. The Contractor shall maintain adequate records and
procedures to ensure that the Government property furnished for servicing can
be readily accounted for and identified at all times while in its custody or
possession or in the custody or possession of any subcontractor.

(c)The Contractor shall be liable for any loss or
destruction of or damage to the Government property furnished for servicing (1)
caused by the Contractor's failure to exercise such care and diligence as a
reasonable prudent owner of similar property would exercise under similar
circumstances, or (2) sustained while the property is being worked upon and
directly resulting from that work, including, but not limited to, any
repairing, adjusting, inspecting, servicing, or maintenance operation.The Contractor shall not be liable for loss
or destruction of or damage to Government property furnished for servicing
resulting from any other cause except to the extent that the loss, destruction,
or damage is covered by insurance (including self-insurance funds or reserves).

(d)In addition to any insurance (including
self-insurance funds or reserves)carried by the Contractor and in effect on the date of this contract
affording protection in whole or in part against loss or destruction of or
damage to such Government property furnished for servicing, the amount and
coverageof which the Contractor agrees
to maintain, the Contractor further agrees to obtain anyadditional insurance covering such loss,
destruction, or damage that the Contracting Officer may from time to time
require.The requirements for this
additional insurance shall be effected under the procedures established by the
FAR 52.243 changes clause of this contract.

(e)The Contractor shall hold the Government
harmless and shall indemnify the Government against all claims for injury to
persons or damage to property of the Contractor or others arising from the
Contractor's possession or use of the Government property furnished for
servicing or arising from the presence of that property on the Contractor's
premises or property.

(End of clause)

1852.245-73 Financial
Reporting of NASA Property in the Custody of Contractors.

As prescribed in
1845.106-70(d), insert the following clause:

FINANCIAL REPORTING OF NASA PROPERTY IN THE

CUSTODY OF CONTRACTORS

(OCTOBER 2003)

(a)The Contractor shall submit annually a NASA Form
(NF) 1018, NASA Property in the Custody of Contractors, in accordance with the
provisions of 1845.505-14, the instructions on the form, subpart 1845.71, and
any supplemental instructions for the current reporting period issued by NASA.

(b)(1) Subcontractor use of NF 1018 is not required by this
clause; however, the Contractor shall include data on property in the
possession of subcontractors in the annual NF 1018.

(3)One copy shall be submitted (through the
Department of Defense (DOD) Property Administrator if contract administration
has been delegated to DOD) to the following address: [Insert name and address
of appropriate NASA Center office.], unless the Contractor uses the NF 1018
Electronic Submission System (NESS) for report preparation and submission.

(c)(1) The annual reporting period shall be
from October 1 of each year through September 30 of the following year. The
report shall be submitted in time to be received by October 15.The information contained in these reports
is entered into the NASA accounting system to reflect current asset values for
agency financial statement purposes.Therefore, it is essential that required reports be received no later
than October 15.Some activity may be
estimated for the month of September, if necessary, to ensure the NF 1018 is
received when due.However, contractors
procedures must document the process for developing these estimates based on
planned activity such as planned purchases or NASA Form 533 (NF 533 Contractor
Financial Management Report) cost estimates.It should be supported and documented by historical experience or other
corroborating evidence, and be retained in accordance with FAR Subpart 4.7,
Contractor Records Retention.Contractors shall validate the reasonableness of the estimates and
associated methodology by comparing them to the actual activity once that data
is available, and adjust them accordingly.In addition, differences between the estimated cost and actual cost must
be adjusted during the next reporting period. Contractors shall have formal policies and procedures, which
address the validation of NF 1018 data, including data from subcontractors, and
the identification and timely reporting of errors.The objective of this validation is to ensure that information
reported is accurate and in compliance with the NASA FAR Supplement.If errors are discovered on NF 1018 after
submission, the contractor shall contact the cognizant NASA Center Industrial
Property Officer (IPO) within 30 days after discovery of the error to discuss
corrective action.

(2) The Contracting Officer
may, in NASA’s interest, withhold payment until a reserve not

exceeding $25,000 or
5 percent of the amount of the contract, whichever is less, has been set aside,
if the Contractor fails to submit annual NF 1018 reports in accordance with
1845.505-14 and any supplemental instructions for the current reporting period
issued by NASA.Such reserve shall be
withheld until the Contracting Officer has determined that NASA has received
the required reports.The withholding
of any amount or the subsequent payment thereof shall not be construed as a
waiver of any Government right.

(d)A final report shall be submitted within 30
days after disposition of all property subject to reporting when the contract
performance period is complete in accordance with (b)(1) through (3) of this
clause.

(End of clause)

1852.245-74Contractor Accountable On-Site Government
Property.

As
prescribed in 1845.106-70(e), insert the following clause:

CONTRACTOR ACCOUNTABLE ON-SITE GOVERNMENT PROPERTY

(MARCH 1989)

(a)In performance of work under this contract,
certain Government property identified in the contract shall be provided to the
Contractor on a no-charge-for-use basis by the installation's Supply and Equipment
Management Officer.That property shall
be utilized in the performance of this contract at the installation that
provided the property or at such other installations or locations as may be
specified elsewhere in this contract.The Contractor assumes accountability and user responsibilities for the
property.

(b)Government property provided shall in every
respect be subject to the provisions of the FAR 52.245 Government property
clause of this contract. In addition, the contractor is responsible for managing
this property in accordance with the guidelines provided by the installation's
Supply and Equipment Management Officer or any other formally designated
representatives of the Contracting Officer.The guidelines include but are not limited to requiring the Contractor
to--

(8)Screen NEMS before acquiring any equipment
costing $1000 or over, plus equipment designated by the installation as
sensitive and costing $500 and over;

(9)Support the Equipment Acquisition Document
(EAD) process; and

(10)
Use Government sources as the first source of supply.

(c)Data requirements relating to the guidelines
in paragraph (b) of this clause are specified under Section F, Deliveries or
performance.

(End of clause)

1852.245-75 Title
to Equipment.

As
prescribed in 1845.106-70(f), insert the following clause:

TITLE TO EQUIPMENT

(MARCH 1989)

(a)In accordance with the FAR 52.245 Government
property clause of this contract, title to equipment and other tangible
personal property acquired by the Contractor with funds providedfor conducting research under this
contract and having an acquisition cost less than $
[Insert a dollar value not less than $5,000]shall vest in the Contractor upon acquisition, provided that the
Contractor has complied with the requirements of the FAR 52.245 Government
property clause.

(b) Upon completion or termination of this contract,
the Contractor shall submit to the Contracting Officer a list of all equipment
with an acquisition cost of $
[Insert the dollar value specified in paragraph (a)] or more acquired under the
contract during the contract period.The list shall include a description, manufacturer and model number,
date acquired, cost, and condition information, and shall be submitted within
30 calendar days after completion or termination of the contract, in accordance
with Federal Acquisition Regulation subsection 45.606-5.

(c) Title to the property specified in paragraph
(b) of this clause vests in the Contractor, but the Government retains the
right to direct transfer of title to property specified in paragraph (b) of
this clause to the Government or to a third party within 180 calendar days
after completion or termination of the contract.Such transfer shall not be the basis for any claim by the
Contractor.

(d)Title to all Government-furnished property
remains vested with the Government (see the FAR 52.245 Government property
clause).

(e)Title to the contractor-acquired property
listed below shall vest with the Government.

[List
any contractor-acquired property for which vesting of title with the Government
is appropriate or insert "None"]

(End of clause)

1852.245-76 Listof Government-Furnished Property.

As
prescribed in 1845.106-70(g), insert the following clause:

LIST OF GOVERNMENT-FURNISHED PROPERTY

(OCTOBER 1988)

For
performance of work under this contract, the Government will make available
Government property identified below or in Attachment
[Insert attachment number or "not applicable"] of this contract on a
no-charge-for-use basis.The Contractor
shall use this property in the performance of this contract at
[Insert applicable site(s) where property will be used] and at other
location(s) as may be approved by the Contracting Officer.Under the FAR 52.245 Government property
clause of this contract, the Contractor is accountable for the identified
property.

Item

Quantity

Acquisition Cost

Date
to be Furnished to the Contractor

[Insert a
description of the item(s), quantity, acquisition cost, and date the property
will be furnished totheContractor]

(End of clause)

1852.245-77 List
of Installation-Accountable Property and Services.

As
prescribed in 1845.106-70(h), insert the following clause:

LIST OF INSTALLATION-ACCOUNTABLE PROPERTY AND
SERVICES

(JULY 1997)

In accordance
with the clause at 1852.245-71, Installation-Accountable Government Property,
the Contractor is authorized use of the types of property and services listed
below, to the extent they are available, in the performance of this contract
within the physical borders of the installation which may include buildings and
space owned or directly leased by NASA in close proximity to the installation,
if so designated by the Contracting Officer.

(a)
Office space, work area space, and utilities.Government telephones are available for official purposes only; pay
telephonesare available for contractor
employees for unofficial calls.

(1)
Equipment to be made available is listed in Attachment
[Insert attachment number or "not applicable" if no equipment is
provided].The Government retains
accountability for this property under the clause at 1852.245-71,
Installation-Accountable Government Property, regardless of its authorized
location.

(2)
If the Contractor acquires property, title to which vests in the Government
pursuant to other provisions of this contract, this property also shall become
accountable to the Government upon its entry into Government records as required
by the clause at 1852.245-71, Installation-Accountable Government
Property.

(3)
The Contractor shall not bring to the installation for use under this contract
any property owned or leased by the Contractor, or other property that the
Contractor is accountable for under any other Government contract, without the
Contracting Officer's prior written approval.

(c)
Supplies from stores stock.

(d)
Publications and blank forms stocked by the installation.

(e)
Safety and fire protection for Contractor personnel and facilities.

(f)
Installationservice facilities:
[Insert the name of the facilities or "None"].

(i)
Building maintenance for facilities occupied by Contractor personnel.

(j)
Moving and hauling for office moves, movement of large equipment, and delivery
of supplies. Moving services shall be provided on-site, as approved by the
Contracting Officer.

(k) The
user responsibilities of the Contractor are defined in paragraph (a) of the
clause at 1852.245-71, Installation-Accountable Government Property.

(End of clause)

1852.245-79 Use
of Government-OwnedProperty.

As
prescribed in 1845.106-70(i), insert the following provision:

USE OF GOVERNMENT-OWNED PROPERTY

(JULY 1997)

(a)The offeror ( ) does,
( ) does not intend to use in performance of any contract awarded as
a result of this solicitation existing Government-owned facilities (real
property or plant equipment), special test equipment, or special tooling
(including any property offered by this solicitation).The offeror shall identify any offered
property not intended to be used.If
the offeror does intend to use any of the above items, the offeror must furnish
the following information required by Federal Acquisition Regulation (FAR)
45.205(b), and NASA FAR Supplement (NFS) 1845.102-71:

(1)
Identification and quantity of each item.Include the item's acquisition cost if it is not property offered by
this solicitation.

(2)
For property not offered by this solicitation, identification of the Government
contract under which the property is accountable and written permission for its
use from the cognizant Contracting Officer.

(3)
Amount of rent, calculated in accordance with FAR 45.403 and the clause at FAR
52.245-9, Use and Charges, unless the property has been offered on a rent-free
basis by this solicitation.

(4)
The dates during which the property will be available for use, and if it is to
be used in more than one contract, the amounts of respective uses in sufficient
detail to support proration of the rent.This information is not required for property offered by this
solicitation.

(b) The
offeror ( ) does, ( ) does not request additional
Government-provided property for use in performing any contract awarded as a
result of this solicitation.If the
offeror requests additional Government-provided property, the offeror must
furnish --

(1)
Identification of the property, quantity, and estimated acquisition cost of
each item; and

(2)
The offeror's written statement of its inability to obtain facilities as
prescribed by FAR 45.302-1(a)(4).

(c) If
the offeror intends to use any Government property (paragraph (a) or (b)of this provision), the offer must also
furnish the following:

(1)
The date of the last Government review of the offeror's property control and
accounting system, actions taken to correct any deficiencies found, and the
name and telephone number of the cognizant property administrator.

(2) A
statement that the offeror has reviewed, understands, and can comply with all
property management and accounting procedures in the solicitation, FAR Subpart
45.5, and NFS Subparts 1845.5 and 1845.71.

(3) A
statement indicating whether or not the costs associated with paragraph (c)(2)
of this provision, including plant clearance and/or plant reconversion costs,
are included in its cost proposal.

(End of provision)

1852.245-80Use of Government Production and Research
Property on a No-ChargeBasis.

As
prescribed in 1845.106-70(k), insert the following clause:

USE OF GOVERNMENT PRODUCTION AND RESEARCH PROPERTY
ON A

NO-CHARGE BASIS

(MARCH 1989)

In
performing this contract, the Contractor is authorized to use on a no-charge,
noninterference basis the Government-owned production and research property
provided to the Contractor under the contract(s) specified below and identified
in the cognizant Contracting Officer's letter approving use of the
property.Use is authorized on the
basis that it will not interfere with performance of the Government contract(s)
under which the property was originally furnished.Use shall be in accordance with the terms and conditions of these
contracts and the cognizant Contracting Officer's approval letter.

Contract
No(s): [Insert the contract number(s) under which the Government property is
accountable].

(a) In
implementation of the Mission Critical Space System Personnel Reliability
Program, described in 14 CFR 1214.5, the Government shall identify personnel
positions that are mission critical.Some of the positions as identified may now or in the future be held by
employees of the Contractor.Upon
notification by the Contracting Officer that a mission-critical position is
being or will be filled by one or more of the Contractor's employees, the Contractor
shall (1) provide the affected employees with a clear understanding of the
investigative and medical requirements and, (2), to the extent permitted by
applicable law, assist the Government by furnishing personal data and medical
records.

(b) The
standard that will be used in certifying individuals for a mission-critical
position is that they must be determined to be suitable, competent, and
reliable in the performance of their assigned duties in accordance with the
screening requirements 14 CFR 1214.5.If the Government determines that a Contractor employee occupying or
nominated to occupy a mission-critical position will not be certified for such
duty, the Contracting Officer shall (1) furnish to the employee the specific
reasons for its action; (2) advise the employee that he/she may avail
himself/herself of the review procedures that are a part of the certification
system; and (3) furnish him/her a copy of those procedures upon request.

(c) If a
Contractor employeewho has been
nominated for (but has not yet filled) a mission-critical position is not
certified, the Contractor agrees to defer the appointment to the position until
the employee has had an opportunity to pursue the referenced procedures.If the employee is an incumbent to the position,
the Contractor agrees, upon the request of the Government, to remove him/her
from the position temporarily pending an appeal of the action under the review
procedures.If any employee not
certified elects not to take action under the procedures, or, if having taken
action, is not successful in obtaining a reversal of the determination, the
Contractor agrees not to appoint the employee to the position, or if already
appointed, to promptly remove the employee.

(End of clause)

1852.246-71
Government Contract QualityAssuranceFunctions.

As
prescribed in 1846.470, insert the following clause:

GOVERNMENT CONTRACTQUALITY ASSURANCEFUNCTIONS

(OCTOBER
1988)

In
accordance with the inspection clause of this contract, the Government intends
to perform the following functions at the locations indicated:

Item

Quality
Assurance Location

Function

[Insert
the items involving quality assurance, the quality assurance functions, and
where the functions will be performed.]

(End of clause)

1852.246-72Material
Inspection andReceiving Report.

As
prescribed in 1846.674, insert the following clause:

MATERIAL INSPECTION AND RECEIVING REPORT

(AUGUST 2003)

(a)At the time of each delivery to the Government under
this contract, the Contractor shall furnish a Material Inspection and Receiving
Report (DD Form 250 series) prepared in [Insert
number of copies, including original] copies, an original and
copies [Insert number of copies].

(b)The Contractor shall prepare the DD Form 250 in
accordance with NASA FAR Supplement 1846.6.The Contractor shall enclose the copies of the DD Form 250 in the
package or seal them in a waterproof envelope, which shall be securely attached
to the exterior of the package in the most protected location.

(c)When more than one packageis involved in a shipment, the Contractor
shall list on the DD Form 250, as additional information, the quantity of
packages and the packagenumbers.The Contractor shall forward the DD Form 250
with the lowest numbered packageof the
shipment and print the words "CONTAINS DD FORM 250" on the package.

(End of clause)

1852.246-73
Human Space Flight Item.

As
prescribed in 1846.370(b), insert the following clause:

HUMAN SPACE FLIGHT ITEM

(MARCH 1997)

The
Contractor shall include the following statement in all subcontracts and
purchase orders placed by it in support of this contract, without exception as
to amount or subcontract level:

"FOR
USE IN HUMAN SPACE FLIGHT; MATERIALS,MANUFACTURING, AND WORKMANSHIP OF HIGHEST QUALITY STANDARDS ARE
ESSENTIAL TO ASTRONAUT SAFETY.

IF YOU
ARE ABLE TO SUPPLY THE DESIRED ITEM WITH A HIGHER QUALITY THAN THAT OF THE
ITEMS SPECIFIED OR PROPOSED, YOU ARE REQUESTED TO BRING THIS FACT TO THE
IMMEDIATE ATTENTION OF THE PURCHASER."

(End of clause)

1852.247-71Protection of the FloridaManatee.

As
prescribed in 1847.7001, insert the following clause:

PROTECTION OF THE FLORIDA MANATEE

(MARCH 1989)

(a)Pursuant to the Endangered Species Act of 1973 (Pub.
L. 93-205), as amended, and the Marine Mammals Protection Act of 1972 (Pub. L.
92-522), the Florida Manatee (Trichechus Manatus) has been designated an
endangered species, and the Banana and Indian Rivers within and adjacent to
NASA's Kennedy Space Center (KSC) have been designated as a critical habitat of
the Florida Manatee.

(c)All vessel operations shall be conducted within
the posted speed restrictions, and vessels shall be operated at minimum
controllable speeds in all KSC waters.Shallow-water operations are prohibited.

(d)Training will be conducted by personnel of the
U.S. Fish and Wildlife Service (USFWS).The contractor agrees to cooperate with the USFWS by allowing access at
reasonable times and places (including shipboard) to USFWS personnel, and by
making available such contractor personnel as are required to have the
training.Arrangements for training
will be made as follows:

[Insert
number of work days]work days prior to
shipping item(s)
[Insert items to be shipped], the Contractor shall furnish the anticipated
shipment date, bill of lading number (if applicable), and carrier identity to
[Insert individual(s) to receive notification] and to the Contracting Officer.

(End of clause)

1852.247-73
Bills of Lading.

As prescribed in 1847.305-70(b), insert a
clause substantially as follows:

BILLS OF LADING

(JUNE 2002)

The
purpose of this clause is to define when a commercial bill of lading or a
government bill of lading is to be used when shipments of deliverable items
under this contract are f.o.b. origin.

bills of
lading (CBLs).The Contractor shall
prepay domestic transportation charges.The Government shall reimburse the Contractor for these charges if they
are added to the invoice as a separate line item supported by the paid freight
receipts. If paid receipts in support of the invoice are not obtainable, a
statement as described below must be completed, signed by an authorized company
representative, and attached to the invoice.

"I
certify that the shipments identified below have been made, transportation
charges have been paid by (company name), and paid freight or comparable
receipts are not obtainable.

Contract or Order Number:

Destination:".

(b)Government Bills of Lading.(1)International (export) and domestic overseas shipments of items deliverable
under this contract shall be made by Government bills of lading (GBLs).As used in this clause, “domestic overseas”
means non-continental United States, i.e. Hawaii, Commonwealth of Puerto Rico,
and possessions of the United States.

(2) At least 15 days before shipment, the
Contractor shall request in writing GBLs from:
[Insert name, title, and mailing address of designated transportation officer
or other official delegated responsibility for GBLs]. If time is limited,
requests may be by telephone:
[Insert appropriate telephone number]. Requests for GBLs shall include the
following information.

(i)
Item identification/ description.

(ii) Origin and destination.

(iii) Individual and total weights.

(iv) Dimensional Weight.

(v)
Dimensions and total cubic footage.

(vi) Total number of pieces.

(vii) Total dollar value.

(viii) Other pertinent data.

(End
of clause)

1852.249-72Termination(Utilities).

As
prescribed in 1849.505-70, insert the following clause.The period of 30 days may be varied not to exceed
90 days.

TERMINATION (UTILITIES)

(MARCH 1989)

The
Government, at its option, may terminate this contract by giving written notice
not less than 30 days in advance of the termination's effective date.

(End of clause)

Subpart
1852.3--Provision and Clause Matrix

1852.300Scope of subpart.

The
matrix in this subpart contains a column for each principal type and/or purpose
of contract.See the first page of the
matrix for the key to column headings, the dollar threshold chart, and
requirement symbols.